Advantages And Disadvantages Of A Mixed Economy

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The South African economic system can be viewed as a mixed economy. Purely, due to the fact that The African National Congress (ANC) has a committed themselves to a “mixed economy”. However, there is much debate over the implications this could place not only for, South Africa but also for the international businesses and for ultimately the people. “The mixed economy” is a concept that is unclear, rather than a “rigorous economic model”. There are two underlying factors about a mixed economy, and this is due to the fact that there are many different types. The first factor being the ANC’s strategy is building a mixed economy towards socialism, however the existing system is one aimed at capitalism. Our economic system is a form of capitalism but is in fact, based on…show more content…
Question 1.3.2
Cell C would have chosen this business mainly due to the fact that when entrepreneurs choose a form of business, with it they need to consider:
 The legal personality of the business – for example, can a business exist independently of its owner/s and have its own liabilities and assets.
 A juristic person exists independently from its members
 Liability of the owner/s – for example, how liable are the owners for outstanding debts and claims against the business?
 The degree to which the owner/s have direct control and authority over activities of the business – for example the application or use of assets and distribution of business profits
 Capital acquisition potential of the business when founded and in the event of expansion further on
 Taxation – income tax, capital gains or transfer duty tax vary depending on the kind of taxpayer
 Possibility of change of ownership – the ease with which the business or the entrepreneur can be transferred
 The legal requirements regarding the establishment, dissolution and management of the business – the tax liability of its owners and the
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